Bay Area

American Kidney Fund to Pull Plug on Aid For 3,700 California Dialysis Patients

Published

5 years ago

November 27, 2019

Ana B. Ibarra, Special to California Black Media

Russell Desmond received a letter a few weeks ago from the American Kidney Fund (AKF) that he said felt like “a smack on the face.”

The organization informed Desmond, who has kidney failure and needs dialysis three times a week, that it will no longer help him pay for his private health insurance plan – to the tune of about $800 a month.

“I am depressed about the whole situation,” said the 58-year-old Sacramento resident. “I have no clue what I’m going to do.”

Desmond has Medicare, but it doesn’t cover the entire cost of his care. So. with assistance from AKF. he pays for a private plan to cover the difference.

Now. the fund, which helps about 3.700 Californians pay their premiums and out-of- pocket costs, is threatening to pull out of California because of a new state law that is expected to cut into the dialysis industry’s profits – leaving patients like Desmond scrambling.

The letter portrayed the fund as helpless. “We are heartbroken at this outcome,” it read. “Ending assistance in California is the last thing we want to do”

But supporters of the new law are calling the threat a scare tactic. State Assembly- man Jim Wood (D- Healds- burg). the author of AB-290, said there is nothing in the measure that prohibits the fund from continuing to provide financial assistance to patients.

“AKF has simply made a conscious decision, without merit, to leave the state despite the many accommodations I made by amending the bill in the Senate to ensure that it can continue to operate in California,” Wood said in a written statement.

What’s behind this dispute, critics of AKF say, is the tight relationship between the fund and the companies that provide dialysis, which filters the blood of people whose kidneys are no longer doing the job.

People on dialysis usually qualify for Medicare, the federal health insurance program for people 65 and older, and those with kidney failure and certain disabilities. If they’re low income, they may also qualify for Medicaid, which is called Medi-Cal in California.

But dialysis companies can get higher reimbursements from private insurers than from public coverage. And one way to keep dialysis patients on private insurance is by giving them financial assistance from AKF, which helps nearly 75,000 low-income dialysis patients across the country.

The fund gets most of its money from DaVita and Fresenius Medical Care, the two largest dialysis companies in the country. The fund does not disclose its donors, but an independent audit of its finances conducted by the accounting firm CliftonLarsenAllen, LLP, reveals that 82% of its funding in 2018 – nearly $250 million – came from two companies.

Insurance plans, consumer advocacy groups and unions have accused AKF of helping dialysis providers steer patients into private insurance plans in exchange for donations from the dialysis industry. Wood said his bill is intended to discourage that practice.

AKF’s CEO LaVarne Burton denied the accusations and said her group plays no role in patients’ coverage choices.

Starting in 2022, the new law will limit the private-insurance reimbursement rate that dialysis companies receive for patients who get assistance from groups such as AKF to the rate that Medicare pays. The rate change won’t apply to patients who are currently receiving assistance as long as they keep the same health plans. The bill will also address a similar dynamic in drug treatment programs.

To determine which patients receive financial aid, the law will require third-party groups to disclose patients’ names to health insurers starting July 1, 2020.

These disclosure requirements are spurring AKF’s decision to leave, Burton said. She argues that they conflict with federal rules and violate patient privacy.

“AKF has no choice but to leave or seek legal relief,” Burton said.

In mid-October, the fund started sending letters to its financial aid recipients in California warning of its departure. And November 1, it joined two dialysis patients in filing suit against the state, asking a U.S. District Court to rule the law unconstitutional.

Gov. Gavin Newsom cautioned against such actions when he signed the bill, and urged “both opponents and supporters to put patients first.”

Ana B. Ibarra, Special to California Black Media

Posts by Ana B. Ibarra, Special to California Black Media

Activism

In 1974, Then-Gov. Jimmy Carter Visited the Home of Oakland Black Black Political Activist Virtual Murrell While Running for President

civil rights icon Georgia State Representative Julian Bond said that Carter, along with governors Reuben Askew of Florida, Dale Bumpers of Arkansas, and Terry Sanford of North Carolina, were all a part of what was being dubbed the “New South” and so supported civil rights and voting rights for African Americans.

Published

2 days ago

January 3, 2025

Oakland Post

Virtual Murrell chats with Jimmy Carter two years before Carter was elected president in 1976. Courtesy photo.

By Virtual T. Murrell
Special to The Post

On his way to seeking the presidency, then-Gov. Jimmy Carter visited the Bay Area in his capacity as campaign chairman of the Democratic National Committee in March of 1974.

A friend of mine, Bill Lynch, a Democrat from San Francisco, had been asked to host Carter, who was then relatively unknown. Seeking my advice on the matter, I immediately called my friend, civil rights icon Georgia State Representative Julian Bond, for his opinion.

Bond said that Carter, along with governors Reuben Askew of Florida, Dale Bumpers of Arkansas, and Terry Sanford of North Carolina, were all a part of what was being dubbed the “New South” and so supported civil rights and voting rights for African Americans.

Based on Julian’s comments, I agreed to host the governor. We picked him up at the San Francisco Airport. With his toothy smile, I could tell almost right away that he was like no other politician I had ever met. On his arrival, there was a message telling him to go to the VIP room, where he met then-Secretary of State Jerry Brown.

After leaving the airport, we went to a reception in his honor at the home of Paul “Red” Fay, who had served as the acting secretary of the Navy under President John Kennedy. (Carter, it turned out, had been himself a 1946 graduate of the U.S. Naval Academy and served as a submariner in the 1950s.)

The following afternoon, the Niagara Movement Democratic Club hosted a reception for Carter, which was a major success. Carter indicated that he would be considering running for president and hoped for our support if he did so.

As the event was winding down, I witnessed the most amazing moment: Carter’s wife, Rosalynn, was in the kitchen with my former wife, Irene, wearing an apron and busting suds! You would have to have been there to see it: The first and last time a white woman cleaned up my kitchen.

A few months later, President Richard Nixon resigned amid the Watergate scandal. He was succeeded by his vice president, Gerald Ford.

On the heels of that scandal, Jimmy Carter’s election in 1976 represented integrity and honesty at a point in America’s history when he was just what the nation needed to lead as president of the United States.

Oakland Post

Posts by Oakland Post

Activism

Oakland Post: Week of January 1 – 7, 2025

The printed Weekly Edition of the Oakland Post: Week of January 1 – 7, 2025

Published

3 days ago

January 2, 2025

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

Oakland Post

Posts by Oakland Post

Activism

Let’s Talk Health: Empowering Our Community with Health Literacy

At Covered California, we recognize that understanding health insurance is more than just choosing a plan –it’s about having the knowledge to make informed decisions that lead to healthier lives. That’s why this year’s open enrollment campaign, “Let’s Talk Health,” focuses on breaking down barriers and simplifying the complex language of health care.

Published

7 days ago

December 29, 2024

Oakland Post

Dr. Monica Soni. Courtesy of Covered California.

By Dr. Monica Soni

Navigating health insurance can often feel overwhelming, especially for individuals and families who are new to the system or unsure about their options.

Health literacy is critical for achieving better outcomes, reducing disparities, and ensuring every African American and Black Californian — regardless of their income, ethnicity, or background — has access to quality care. By making health insurance simpler to understand, we empower individuals to access preventive services, manage chronic conditions, and avoid costly medical bills.

Breaking Barriers in African American and Black Communities
This year, “Let’s Talk Health” places a special focus on supporting African American and Black communities, where systemic inequities in health outcomes persist. These communities often face higher rates of chronic conditions and challenges in navigating the health care system. To address these disparities, Covered California partnered with trusted organizations to provide information, tips and resources.

In San Francisco, Andre Atkins, Director of Programs at Rafiki Coalition, led a dialogue with Dr. Kim Rhoads, Community Engagement Director at UCSF Helen Diller Family Comprehensive Cancer Center; Destiny Williams, Health and Wellness Program Manager at Rafiki Coalition; and myself.

These conversations play a vital role in the pursuit of health equity by sharing power and creating spaces where our community can learn, share experiences, ask questions and connect with advocates who work daily to understand their unique needs. Through these efforts, we reaffirm our dedication to fostering equity and inclusion in health care, ensuring that every voice is heard and supported.

Why Health Literacy Matters
Health literacy goes beyond understanding health care terms. It’s about empowerment. It equips individuals to make informed decisions, from choosing the right health plan to finding a provider to deliver preventive care and seeking mental health services. At Covered California, we provide tools and resources, such as side-by-side plan comparisons and financial assistance details, to ensure everyone can navigate their options confidently and access the care they need.

Taking the First Step
Whether you’re a student, part-time worker, family of four, open enrollment is your opportunity to prioritize your health and your future. This year’s open enrollment period runs from Nov. 1, 2024, to Jan. 31, 2025, and we’re here to assist you every step of the way.

Consumers must select a health plan by the Dec. 31 to receive coverage for the entire year, starting Jan. 1, 2025.

To find the plan that’s right for you, and take the first step toward a healthier tomorrow, visit CoveredCA.com and fill out the application yourself or put in your ZIP code and connect with a certified agent in your neighborhood who can guide you through your options. Together, we can break down barriers and ensure that all Californians have the tools to thrive.

Dr. Monica Soni, MD, is the Chief Medical Officer for Covered California, where she leads efforts in health equity, quality transformation, and clinical innovation. As a practicing board-certified internal medicine physician and health care leader with over a decade of experience, Dr. Soni is committed to improving affordability, access, and outcomes for all Californians.